In the era of modern technology and advancements, we no longer use the traditional method of paying cash by hand. We rather use our mobile phones and cards to pay. It all happens with a single tap. GofundMe and PayPal are such platforms where you can utilize them to make payments.
GofundMe vs PayPal
The main difference between GofundMe and PayPal is that GofundMe is a crowdfunding website and PayPal is used for making payments when you purchase anything. These come under the online transactions category and they are safe and secure to do. There are many other different websites similar to these two sites.
GofundMe is a very useful and important website. Anyone who needs money for reasonable and authentic causes can mention their needs and receive money from various people. People donate money to those who require this website. In short, it is a crowdfunding website. It is available as a website and also as a mobile application.
PayPal is another beneficial and essential website. You can use it to pay and receive money transactions. Here everything is done online. Hence it becomes easier to pay with just a tap on your phone by scanning the QR code. It is called the Quick Response code. This is available as a mobile application for Android and iOS.
Comparison Table Between GofundMe and Paypal
| Parameters of Comparison | GofundMe | Paypal |
| Type of company | An American company that enables us to donate and receive money online | An American company that enables us to make transactions online |
| Type of website | We can do crowdfunding here | We can make online payments here |
| Founders | Brad Damphousse and Andrew Ballester | Peter Thiel, Max Levchin, Luke Nosek, Ken Howery, Yu Pan and Ellon Musk |
| Headquarters | Redwood City, California, United States | San Jose, California, United States |
| Language | Italian, German, French, Portuguese, Dutch and English | French, Spanish and English |
What is GofundMe?
GofundMe is an American Company. It works in the business of crowdfunding helping so many people across the globe. It is a famous website known for crowdfunding. It is very trustable and secure to make donations. There are several campaigns on the website created by people you can pick and choose who you want to donate for.
GofundMe works both ways or on both sides. We can not only make donations to campaigns and be the giver but we can also receive donations by creating authentic campaigns with genuine reasons and be the receiver. The best part about this website is that you can receive money once the page receives it.
This website does not hold one for a week or a month like the other crowdfunding website but gives payments immediately when received. This is also available as an application on your phone.GofundMe allows you to share your campaign on various social media platforms such as Facebook so that your campaign can reach a larger audience.
GofundMe charges only 2.9% and some tax charges to receive your funds. GofundMe does not have any deadline for your campaign to expire. You can raise money for any reason from health to holiday plans. As long as it is genuine people will donate to it.
What is Paypal?
Paypal is a website and a mobile application. You can easily do money transactions online. All you need is a bank account and an internet connection. With Paypal, you can shop from anywhere. You need to download the app, scan the QR code and pay. It is easy as it sounds.
In December 1998 it was bought by eBay and later PayPal became a separate company in 2015. With PayPal, you can also get money for credit. There is an option called PayPal credit and you can borrow money without any physical card in existence, as everything here is done online.
PayPal cash is also another system where you can redeem money from your own PayPal account as cash. It was introduced in 2019. Using PayPal is safe and prevents any fraudulent transactions. The bank details you provide are encrypted and kept safe by Paypal. There is also a business transaction that can be done on PayPal.
Paypal can be used to do business transactions but they charge a percentage for it. There are also so many alternatives for PayPal such as Google pay, Skrill, Apple pay and Dwolla. Instead of traditionally paying money physically as the paper we can do it online. It also has other subsidiary companies.
Main Differences Between GofundMe and PayPal
- GofundMe is an American company where you can do crowdfunding. PayPal is also an American company that enables us to do online transactions. It is available as a website and as a mobile application on iOS and Android. GofundMe is a website
- GofundMe enables you to create campaigns and share them with various social media platforms. PayPal cannot be used to create campaigns or share with social media platforms
- GofundMe allows you to do online donations which are safe and secure. With PayPal, you can shop anything from anywhere.
- Both the companies charge some taxes. GofundMe charges a certain amount to receive your funds. PayPal charges only a certain amount for business transactions. Both companies charge less.
- Both the companies have their headquarters in the United States, in different places.GofundMe has its headquarters in Redwood City, California, United States. PayPal has its headquarters in San Jose, California, United States
Conclusion
GofundMe is a great crowdfunding website known for the promising donations that it has so far received. With GofundMe you can receive donations from almost any part of the world.PayPal has changed the way we pay money. It is more convenient and uncomplicated. As you don’t need to carry cards physically. Debit and Credit cards can be stolen.
Phone payments are made very secure and it saves so much time. We have made so many advancements in the field of technology and these are some of them. The technical world continues to grow and we can make our life easier and comfortable.
References
- https://arxiv.org/abs/2001.05446